Lesson from Koch: Fix housing, fix city

By Errol Louis, Special to CNN

Updated 12:19 PM ET, Thu February 7, 2013

Photos: Ed Koch through the years9 photos

Ed Koch through the years – Ed Koch speaks at the renaming of the Queensboro Bridge in his honor in May 2011. The brash former New York mayor died Friday, February 1, of congestive heart failure at 88, his spokesman said.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch campaigned for a New York State Assembly seat in August 1962.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch, a three-term mayor of New York, rides the subway in January 1978.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch reads The Washington Post during a newspaper strike in New York in 1978.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch, here in his office in 1980, was a popular mayor for three terms until David Dinkins defeated him in the 1989 Democratic primary.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch at a July 1986 press conference at City Hall with Jesse Jackson.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Rudy Giuliani, then U.S. attorney for the Southern District of New York, and Koch meet the press in January 1989.

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Ed Koch through the years – Koch rests on the steps of City Hall in May 2001. After leaving office, Koch practiced law, hosted a radio show, wrote a newspaper column and made countless TV cameo appearances.

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Photos: Ed Koch through the years9 photos

Ed Koch through the years – Koch leaves a morning breakfast in September 2011 in which Mayor Michael Bloomberg discussed Lower Manhattan's growth following 9/11.

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Story highlights

Errol Louis: Building affordable housing in NYC was a Koch feat; other cities should follow

He says Koch made major investment in housing to raise up families, neighborhoods

He says Koch did this at a blighted time in NY when fed housing support dried up

Louis: New York continues to lead in spending on rehabs, new housing, a Koch legacy

Before memories begin fading of the funny, feisty, combative former mayor of New York City, America would do well to pause one last time, and remember the greatest achievement of the late Ed Koch: his extraordinary, multi-billion-dollar program of building low-cost, affordable housing.

It's easy to lose perspective on the legacy of this larger-than-life character. As host of New York's only nightly political show, I got to sit and talk with Ed Koch every Tuesday night for the last two years, when he appeared on our "NY1 Wiseguys" segment, a weekly forum for retired politicians to weigh in on the issues of the day.

Koch's final appearance came less than three weeks before he died -- and to the very end, he was a dazzling showman, always ready with a quip, a quarrel or a crusade. All of us will miss him terribly.

But we shouldn't miss the main lesson of his mayoralty: Investing in low-cost housing helped families, preserved neighborhoods, and saved a city. And it might be used to do the same for the rest of the country.

Errol Louis

In 1977, the year Koch was elected mayor, New York had been devastated by waves of arson, abandonment and economic decline, leaving entire neighborhoods strewn with rubble and vacant shells where apartments once stood. A front-page story in the New York Times captured the scene when President Jimmy Carter made a dramatic, unannounced trip to Charlotte Street in the South Bronx to see "block after block of burned-out and abandoned buildings, rubble-strewn lots and open fire hydrants."

Koch, who was elected a month after Carter's "sobering" visit, scrambled to organize a response to the blight but encountered a roadblock a few years later, when the Reagan administration effectively ended federal support for low-income housing, replacing a longstanding program with rent vouchers for the poor.

The plan was audacious. It required massive rezoning of the city and coordination between multiple agencies. More importantly, it deployed New York's capital budget, normally used to pay for sidewalks, roads, bridges and government buildings.

Koch put the full faith and credit of the city on the line, borrowing the billions needed for rebuilding and trusting that a general economic recovery would provide the funds to repay bondholders. It was a gutsy move, coming barely a decade after New York's near-bankruptcy.

But the plan was a spectacular success. A veritable army of nonprofit, community-based housing developers worked in partnership with the city to reclaim and rebuild apartments, and neighborhoods like the South Bronx, Bedford-Stuyvesant and Harlem slowly reversed pernicious patterns of decline.

Some who had been homeless left the streets and got their lives back on track, while middle-class families moved back in and began paying taxes, raising families and supporting local businesses.

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Ironically, it was the very neighborhoods Koch saved that provided the votes that speeded his political downfall, with the election of David Dinkins as New York's first black mayor in 1989. But Dinkins and every other mayor since Koch has sworn allegiance to the housing plan, using the capital budget and alliances with community organizations to build and subsidize workforce housing.